Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
3 L* M, F" D/ X# q. I  z8 e) P$ e" Qexpect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
+ m; l2 G$ B3 j* s5 k4 ^6 Wthese oil producer will go bankrupt or out of the business even if
crude prices improves. This implies also to good names such as Shell,
' u3 a1 z, P  x$ F$ u! S' CEXXON, BG, BP, Cheveron ....xyz.. oils

, f& j9 z" K) A1 x3 xRecently OPEC reduced crude oil production twice over just a few
2 ^7 q- w9 O3 B8 o% e. Q9 Dmonths. There are three wars going on in Gaza, Iraq and Afghandistan.
A year ago these things would have spiked the price of crude oil by at
least $50.00 per barrel. Today, oil price declined by a record amount.
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3 {. ?& y7 n! `( uThere are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:
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1 G$ m; r$ F3 q  O) A. q$ g1. New oil has been found in Canada, Montana, North & South Dakota and
8 N1 I; A+ z* Win the ocean near Brazil. Each of these oil fields has more oil than
Arabia.

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3 \9 I0 E  r) U+ a2. New natural gas has been found in Pennsylvania and West Virginia.
9 L* \) M' y0 b# M/ Q; {  jThis is the largest find in North America.


3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.
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4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
+ m& W  f6 o, w: Hracing to produce bio fuels.
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, ]$ E& ^4 m) h& G: ~, s7 O5. Virtually every restaurant in the US and all food processing plants
4 R& k- t1 V' \8 z+ v) t# w8 kare now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.
/ r: H6 U1 r* ^. j' y+ a
: h/ B; W; l+ P6 Z7 M' ?8 k; _
! I+ [- W  w! M( l0 B/ r" e6. There are 99 nuclear reactors in various stages of planning and
* O; A8 e: V+ w5 |8 ?construction around the world at this time. Several hundred more are
' M. _4 K6 S/ U& Aexpected to be built in the future. Much of the energy they produce
! c# m; w# _9 U, i$ Awill replace oil.
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7. Every company in any form of transportaion business is replacing
) K( L% G" D2 g( oolder equipment such as trucks, airplanes, train engines, ships, etc.
9 b4 E" O6 Z6 E+ x9 |; G7 Ewith new more fuel efficient equipment. Airlines and railway companies
9 R  ?$ A; a/ q! z! gare experiencing 20% to 25% better fuel econony with the new
equipment.
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! o$ A% @. D# }: UAirlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.
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8. Cities and counties throughout the US are selling the rights to
0 N1 C- z9 E, vcapture methane gas from landfills. This is a huge source of gas
( ~$ \1 S# ]1 _2 t9 {6 oavailable at very little cost or risk. The gas is displacing crude
$ d7 \) n$ Q, }# G. k% w/ i* Zoil.
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4 C2 _. O$ U: H- r: x9. Coal is being transformed into a clean burning liquid fuel. The CO2
1 h6 ~4 t; [9 U! s& h7 Fproduced as a byproduct is sold to oil companies for injection into
oil wells.
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10. Solar, wind and ocean energy is displacing oil as an energy
6 g7 S1 E1 X* m& m: \; ^source. Three new wind turbines are being erected every day in the US.
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5 O4 x* K6 }; k1 L# L! J7 v" g3 cEach of the above by itself will not make a large difference in the
8 O. u0 V" V9 v. D' pprice of crude oil but the sum of all of them together is world
- m! a' z; c( @. S9 Wchanging. The important thing is that OPEC no longer has the ability
9 W5 E% s2 p: Fto control oil prices.
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# Q& s+ E# X) d, U) j9 l) B% DWith the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
' Y/ e9 K  J$ N5 B- S+ s; e3 Y' Tvalue .....
% O: ^- D  F1 C9 ]9 J  h% bIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...


1 V; D* G; V/ y$ ^8 G3 RThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only